As the world grapples with pressing environmental changes and consumer consciousness driving decision-making, it’s become more imperative than ever that businesses adopt sustainable strategies. Companies who decide not to implement forward-looking sustainability goals are putting themselves at risk. As we step into 2024, we anticipate companies across industries to prioritize sustainability in their operations, supply chain, and overall business models.
#1: Rethinking IT Strategies to Support Sustainability
Many companies have set bold net zero targets for 2040 and 2050, but with data traffic predicted to grow eightfold by 2030, excluding the impact of Generative AI, and many organizations not factoring in the carbon impact of fuelling this increase, meeting these targets will be tough without rethinking their IT strategies.
As data traffic increases, data center efficiency will take the lead in reducing energy consumption. Companies can optimize server utilization, upgrade to energy-efficient hardware, and implement advanced cooling technologies in their data centers. But, reducing the carbon footprint of a data center might also require alternative options like renewable energy.
While cloud technology has existed for years, companies have been transitioning to virtual cloud computing environments that allow them to consolidate infrastructure and reduce their hardware footprint. Cloud providers typically operate highly efficient data centers, leading to energy savings and lower carbon emissions compared to having those services on the premises. Embracing cloud-based solutions also supports scalability, flexibility, and resource optimization while aligning itself with a business’s sustainability goals.
As more and more companies have turned to remote work and partnering with virtual services, smart building technologies have also been on the rise. This allows companies to optimize their energy usage, improve operational efficiency, and reduce environmental impact. Things that might be included in smart building technologies are optimized HVAC systems and lighting, which don’t just minimize energy consumption but maintain comfort for employees.
#2: Renewing Net Zero Goals and Cutting Carbon Emissions
In 2024, we expect to see a renewed focus on reaching net zero and increasingly bold plans to cut carbon emissions. While there’s a wide range of strategies and initiatives across various sectors, companies will include actions like setting clear emission reduction targets, making energy-efficient improvements, optimizing their supply chain, and even offsetting carbon emissions that are difficult to eliminate entirely.
It is typical for most of a company’s emissions to sit in its own supply chain. Therefore, we’ll see more and more companies working with key suppliers that prioritize their own carbon footprints. By doing so, companies will aim to mitigate the environmental impact of their entire chain. This collaboration will emphasize the importance of transparency and accountability across the supply chain. Companies will be keen to demonstrate progress using credible data, as customers and investors want to see a clear-cut plan with measurable targets, creating a path to sustainability.
Companies' messaging will center around supply chain emissions and the footprint of shared digital infrastructure. Optimizing digital infrastructure, including the core supply chain components for net zero, increases efficiency, reduces cost, and builds a reputation among companies’ customers and stakeholders. It also wins the support of investors, who are keen to see strong environmental governance.
Investors and stakeholders hold a growing concern about sustainability as more and more consumers are using environmental, social, and governance (ESG) metrics to influence their purchasing and brand loyalty decisions. At that point, it poses a financial risk along with the weight of a company’s reputation to not “Keep up with the Joneses” in terms of sustainability.
#3: Utilizing Technological Advancements to Identify Inefficiencies
Advancements in data analytics and artificial intelligence present new opportunities for companies to optimize their utilization of resources and reduce emissions. Businesses can use predictive analytics to optimize resource allocation, machine learning to identify inefficiencies and minimize waste generation, and utilize AI technology to monitor their performances in real time and create adaptive management strategies. When applied correctly, companies are enabled to stay ahead of regulatory requirements, consumer expectations, and market trends while positioning themselves as leaders in sustainable business practices.
If your company utilizes a fleet of vehicles, switching to low-carbon alternatives like electric vehicles is one way to reduce your carbon footprint. But think about how AI can use advanced algorithms to analyze data, like traffic patterns, real-time traffic conditions, weather forecasts, and road infrastructure to optimize transportation and delivery routes. These AI-enhanced insights can minimize travel times, reduce fuel consumption, and minimize emissions, aligning with a number of sustainability efforts.
By harnessing advanced analytics, artificial intelligence, and machine learning, companies will increasingly recognize the role of technology in their sustainability efforts.
As we navigate the year ahead, the imperative for sustainability will define the course of IT innovation. The renewed commitment to net-zero targets underscores a pivotal moment for companies to reassess their carbon impact and environmental governance. Beyond simply meeting regulatory requirements, organizations will be compelled to adopt ambitious sustainability plans that align with net zero targets and demonstrate environmental responsibility. The discourse in 2024 will not only revolve around compliance but will also have companies showcasing their commitment to sustainability through tangible actions and measurable outcomes. This renewed focus on sustainability sets the stage for innovation and resilience while positioning businesses to thrive in a rapidly evolving landscape. Companies that embrace the intersection of technology and sustainability are paving the way for a greener, more sustainable future.
